Why BofA’s Wamsi Mohan is Neutral on Apple (video)

“We speak with a lot of investors who are not particularly inclined to chase the stock over here given that they didn’t like the stock $100 or $200 ago.” — Mohan

My take: His new $140 price target (up from $120) has the virtue of being above water.


  1. Gregg Thurman said:
    Legitimate concerns, although I’d have tp question those that didn’t like AAPL $200 ($50 post split) ago.

    I wouldn’t be surprised to see an AAPL pullback from this level, and wouldn’t be unhappy as long as AAPL didn’t retreat more than $6.50 ($28 pre-split) by Friday Close.

    September 1, 2020
  2. John Konopka said:
    I think he is too focused on the iPhone and not looking at the overall business. This is same thing we’ve heard for years. Yes, last years iPhone was good but we have anxiety about the next one.

    Also, we are in strange times where stock prices seem uncoupled somewhat from company performance. Katy Huberty seemed to have a good insight in looking at the free cash flow as a company metric. In this time of uncertainty Apple is a safe harbor. It is a rock solid business which is well run. It has a billion or so customers who spend a consistent amount on Apple products every year.

    Interestingly enough, I just heard from an investment guy today that I should diversify out of Apple. I don’t think it had anything to do with Apple, this is just their training.

    September 2, 2020
    • David Emery said:
      A friend who is a more knowledgeable investor than I argues against diversity. He says “pick a few things that you understand well, rather than a bunch of things that you don’t.” I think his portfolio is something like 4 stocks and 3 funds. (One of those funds is a short term bond fund, the other two are similarly chosen for a set of investments in a relatively narrow category.)

      September 2, 2020

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